US productivity in Q1 revised up to 2.1% decline, from 2.7% fall

ISTANBUL

US nonfarm business sector labor productivity was revised up to a decline of 2.1% in the first quarter of this year, compared to the previously reported figure of a 2.7% fall, said a statement by the Bureau of Labor Statistics on Thursday.

The revision for the figure, which measures the change in labor efficiency when producing goods and services, is a result of the combined effect of an upward revision to output but a downward revision to hours worked.

Annually, the nonfarm business sector labor productivity decreased 0.8% in the first quarter, compared to the same period last year, reflecting a 1.4% increase in output and a 2.2% gain in hours worked, the agency said in a statement.

Unit labor costs in the nonfarm business sector, on the other hand, was revised lower.

Despite a 6.3% gain announced in early May, the figure was now revised down to a 4.2% increase for the first quarter of 2023.

The revision reflects a 2.1% increase in hourly compensation and a 2.1% decrease in productivity, the agency said.

The figure, which is the ratio of hourly compensation to labor productivity, rose 3.8% year-on-year.

Manufacturing sector labor productivity decreased 2.5% on a quarterly basis and declined 0.1% annually.